By Commodity News Service Canada
Winnipeg, August 28 – The Canadian dollar was higher against its US counterpart at midday Thursday, due to reports that Canada’s current account deficit fell C$200-million to C$11.9 billion.
The decline was credited to an increase in the deficit on trade in goods and services, according to a report.
The US GDP increased by 4.2 percent during the second quarter. That exceeded analysts’ expectations of a 4 percent rise.
The loonie also continues to feel the impact of Burger King’s announcement it is buying Tim Hortons. Analysts say the American fast-food giant will need Canadian dollars to close the deal, which supported the loonie on the international market.
The December copper contract fell five cents to US$3.15 a pound. The October crude oil contract gained 60 cents to US$94.48 a barrel. December gold jumped $8.10 to $1,291.50 an ounce.
At 11:40 CDT Thursday, the Canadian dollar was trading at US$0.9211 or US$1.0856, which compares with Wednesday’s North American close of US$0.9212, or US$=$1.0855.
At 11:40 CDT Thursday, the Toronto Stock Exchange was down 30.62 points to sit at 15,572.03.
